Institutional investment is making a significant foray into Bitcoin treasuries, with Capital Group, one of America’s major investment firms, taking a prominent role in Metaplanet.
Summary
- Capital Group has secured an 11.45% stake in Bitcoin-centric Metaplanet, valued at approximately $500 million.
- Metaplanet has enhanced its Bitcoin holdings, now possessing around 26,000 BTC following a recent acquisition of 5,419 BTC.
- Capital Group is growing its cryptocurrency exposure through equity investments while steering clear of direct Bitcoin ownership.
Capital Group has acquired an 11.45% share in Japanese Bitcoin treasury firm Metaplanet, positioning itself as the largest shareholder. The Tokyo-based organization disclosed this news in an official announcement on September 25.
The stake held by Capital Group is valued at nearly $500 million and was obtained through its subsidiary, Capital Research and Management Company. This investment has increased the firm’s voting rights from 8.31% to 11.45%, surpassing National Financial Services LLC as the leading shareholder.
This development occurs as Metaplanet continues to strengthen its Bitcoin (BTC) strategy, recently augmenting its holdings with the addition of 5,419 BTC, valued at approximately $633 million. Metaplanet now possesses around 25,500 BTC in total, ranking it among the top five corporate Bitcoin treasuries globally.
Capital Group intensifies Bitcoin investment with Metaplanet
In recent years, Capital Group has been progressively increasing its investments in Bitcoin and related assets, with its largest stake being in Strategy, the biggest public holder of BTC. In 2021, the firm purchased a 12.3% interest in Strategy for over $500 million. That stake, which has since decreased to 7.89%, is now valued at approximately $6.2 billion following a multi-year surge in MicroStrategy’s stock value.
The U.S.-based investment firm is known for its conservative asset allocation strategy and boasts a 94-year history along with over $2.3 trillion in assets under management.
Currently, Capital Group does not hold Bitcoin directly on its balance sheet and does not offer a proprietary Bitcoin exchange-traded fund. Their strategy focuses on capitalizing on equity stakes in companies that maintain substantial corporate treasuries in BTC to engage with Bitcoin’s emergence as an institutional asset class.
Bitcoin is currently trading around $111,000, down 4.5% over the past week, as the overall cryptocurrency market faces challenges in sustaining its momentum.
